Saudi Aramco, China partner for industrial manufacturing
Aramco and China National Building Material Group (CNBM) enter into a five-year agreement
Dubai: Saudi Arabian oil producer Saudi Aramco is considering the establishment of manufacturing facilities for industrial components and advanced materials in partnership with a state-owned Chinese company.
The Saudi-listed firm and China National Building Material Group (CNBM) have entered into a five-year agreement aimed at potential collaboration, which includes setting up manufacturing plants in Saudi Arabia to produce wind turbine blades, hydrogen storage tanks, lower-carbon building materials, and energy storage solutions.
The companies plan to create a new centre for training, inspection, and accreditation, as well as a joint technology development centre and a laboratory to foster innovation.
In July, Saudi Aramco and the Public Investment Fund (PIF), the country’s sovereign wealth fund, increased their investment in a steel plate joint venture with a Chinese company to $500 million (Dh1.8 billion).
Aramco awarded a $1.3 billion (Dh4.7 billion) contract to Sinopec, a major Chinese state energy firm, for the expansion of its domestic natural gas pipeline.
China has emerged as the largest foreign investor in Saudi Arabia, with $16.8 billion (Dh61 billion) in investments, highlighting the Saudi Arabia’s shift toward eastern partnerships following Chinese President Xi Jinping's visit to Riyadh in December 2022.